Charity shops are a type of social enterprise. They sell mainly used goodsdonated by members of the public, and are often staffed by volunteers. Because the items for sale were obtained for free, and business costs are low, the items can be sold at competitive prices. After costs are paid, all remaining income from the sales is used in accord with the organization's stated charitable purpose. Costs include purchase and/or depreciation of fixtures (clothing racks, bookshelves, counters, etc.), operating costs (maintenance, municipal service fees, electricity, telephone, limited advertising) and the building lease or mortgage.

History

One of the earliest charity shops was set up by the Wolverhampton Society for the Blind (now called the Beacon Centre for the Blind) in 1899 to sell goods made by blind people to raise money for the Society.[1] During World War I, various fund-raising activities occurred, such as a bazaar in Shepherd Market, London, which made £50,000 for the Red Cross.

However, it was during the Second World War that the charity shop became widespread. Edinburgh University Settlement opened their 'Thrift Shop for Everyone' on Nicholson Place, Edinburgh in 1937, the Red Cross opened up its first charity shop at 17 Old Bond Street, London in 1941. For the duration of the war, over two hundred “permanent” Red Cross gift shops and about 150 temporary Red Cross shops were opened. A condition of the shop licence issued by the Board of Trade was that all goods offered for sale were gifts. Purchase for re-sale was forbidden. The entire proceeds from sales had to be passed to the Duke of Gloucester’s Red Cross or the St John Fund. Most premises were lent free of rent and in some cases owners also met the costs of heating and lighting.

The first Oxfam charity shop in the United Kingdom was established by Cecil Jackson-Cole in Broad Street, Oxford, and began trading in December 1947 (although the shop itself did not open until February 1948).

Second-hand goods are considered to be quite safe. The South Australian Public Health Directorate says that the health risk of buying used clothing is very low. It explains that washing purchased items in hot water is just one of several ways to eliminate the risk of contracting infectious diseases.[2]

New goods sold at charity shops

Some charity shops, such as the British Heart Foundation, also sell a range of new goods which may be branded to the charity, or have some connection with the cause the charity supports. Oxfam stores, for example, sell fair trade food and crafts. Charity shops may receive overstock or obsolete goods from local for-profit businesses; the for-profit businesses benefit by taking a tax write-off and clearing unwanted goods from their store instead of throwing the goods out, which is costly.

United Kingdom

Window display in a UK charity shop.

Oxfam has the largest number of charity shops in the UK with over 700 stores. Many Oxfam shops also sell books, and the organization now operates over 70 specialist Oxfam Bookshops, making them the largest retailer of second-hand books in the United Kingdom. Other Oxfam affiliates also have stores, such as Jersey, Germany, Ireland (45 shops in NI/ROI), the Netherlands and Hong Kong.

There are over 9,000 charity shops in the UK and Republic of Ireland. Their locations can be found on the Charity Retail Association (CRA) website,[3] along with information on charity retail, what shops can and can't accept, etc. The CRA is a member organisation for charities which run shops.

British charity shops are mainly staffed by unpaid volunteers, with a paid shop manager. Goods for sale are predominantly from donations - 87% according to the official estimate.[4] Donations should be taken directly to a charity shop during opening hours, as goods left on the street may be stolen or damaged by passers-by or inclement weather. In expensive areas, donations include a proportion of good quality designer clothing and charity shops in these areas are sought out for cut-price fashions.[citation needed]

Almost all charity shops sell on their unsold textiles (i.e. unfashionable, stained or damaged fabric) to textile processors. Each charity shop saves an average or 40 tonnes of textiles every year, by selling them in the shop, or passing them on to these textile merchants for recycling or reuse. This grosses to around 363,000 tonnes across all charity shops in the UK; based on 2010 landfill tax value at £48 per tonne, the value of textiles reused or passed for recycling by charity shops in terms of savings in landfill tax is £17,424,000 p.a.[5]

Gift Aid is a UK tax incentive for individual donors where, subject to a signed declaration being held by the charity, income tax paid on donations can be reclaimed by the charity. Although initially intended only for cash donations, the scheme now (since 2006) allows tax on the income earned by charity shops acting as agent for the donor to be reclaimed.[6]

Charity shops in the UK get mandatory 80% relief on business rates on their premises, which is funded by central government (not by local ratepayers) and is one illustration of their support for the charity sector and the role of charity shops in raising funds for charities.[7] Charities can apply for discretionary relief on the remaining 20%, which is an occasional source of criticism from retailers which have to pay in full.[8]

See also

References

↑"Second-hand goods: A guide for consumers"(PDF). Public and Environmental Health Service website. Department of Health, Government of South Australia. October 2008. Retrieved 16 July 2010. As the risk to health associated with second-hand goods is very low, thorough and hygienic cleaning is all that is required to eliminate the risk of contracting infectious diseases. ... Washing second-hand clothing and bedding in hot water (hotter than 60°C) and detergent kills these disease-causing organisms. Items that cannot be washed ...